There are a number of reasons why you may need a business valuation in Australia. These include:
When we value an enterprise, we value add as part of the process to determine where improvements can be made by outlining and explaining why certain types of businesses are worth more than others.
You could say we are doing a business health check at the same time, identifying opportunities to increase profitability and its value, which will definitely benefit you in the long run, explained in more detail below.
As business valuers, we have also acted as Expert Witnesses for businesses involved with a compulsory acquisition by government bodies and have provided advice to clients as to whether the value is in line with what has been offered prior to it being accepted. Our costs are covered by the compulsory acquirers (as outlined in the legislation).
For more information on the process, please go to http://www.valuergeneral.nsw.gov.au/compulsory_acquisitions/compulsory_acquisition_process
In a perfect world there would be only one valuation method which could then be easily determined so that an informed group of people with the same information could come up with the same value conclusion. However, unfortunately this is not the case. The valuation methodologies are usually determined by reference to:
Do you really know what your business is worth right now? Business owners often have a lack of understanding as to what their business is really worth, as you’re spending most of your time actually running the business and keeping the wheels turning! Most of the time this aspect is overlooked until it is desperately needed. There are a number of reasons why business valuation services may be required.
If you are buying or selling you will need to determine its value prior to negotiating on price. This means that you are working out whether you are paying a fair price if you are buying or ensuring you are getting a reasonable price when you sell.